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When to Build vs. Buy Software
A decision framework for leaders who are tired of “it depends.”
Buy when the problem is standard and your differentiation isn’t in the workflow. Build when software is how you compete—speed, accuracy, cost structure, or customer experience.
Signals you should build
- Your team hacks around the tool with spreadsheets and shadow processes.
- You’re paying for 10 modules but only use 2—yet still pay integration tax.
- You need a moat: pricing, routing, or compliance logic that off-the-shelf tools can’t model well.
Signals you should buy
- The problem is non-core (e.g., payroll) and vendors compete heavily on it.
- You need immediate compliance coverage and can’t absorb audit risk.
- Tight timeline and the bought product fits 80% with acceptable gaps.
The best outcomes are often hybrid: buy the commodity layer, build the thin layer that differentiates you.
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